AI cuts deepen as US giants slash white-collar roles, leaving applicants in a tougher market
America’s biggest employers are trimming corporate headcount, citing efficiency drives and the rapid adoption of artificial intelligence. Amazon said it will cut 14,000 corporate jobs, with plans that could ultimately remove up to 10 percent of its white-collar workforce. UPS reported about 14,000 management reductions over the past 22 months. Target announced 1,800 corporate job cuts. Recent layoffs have also hit Rivian, Molson Coors, Booz Allen Hamilton and General Motors.
The result is a leaner office economy with fewer midlevel opportunities and heavier workloads for those who remain. Nearly two million people have been unemployed for 27 weeks or more according to recent federal data, a sign that re-entry is slow even as headline growth continues.
Workers describe abrupt exits and narrow pathways back in. One Amazon Whole Foods employee in Austin was told by text to stay home, then learned her role on the asset-protection team was being eliminated, with 90 days to find a new internal post. Others have shifted out of tech altogether. A Texas sales veteran applied to more than 1,000 jobs after a layoff, sold investments to cover bills, and eventually took a long-hours dealership role with a daily commute that stretches beyond two hours.
Employers say AI is reshaping task loads and staffing plans. Companies are deploying automation in accounting, fraud monitoring and software work. Some executives report steep reductions in development teams while claiming higher output, citing clusters of AI agents that generate code managed by fewer people. Investors are pressing for efficiency, with targets that can reach headcount cuts of 30 percent.
Recruiters and candidates report a tightening filter on qualifications. Firms with budget to hire are demanding close matches to job descriptions. Midcareer applicants in their 40s are struggling to keep pace with changing tools. Entry-level hiring is also squeezed. The class of 2025 has submitted more applications than last year’s cohort, yet has received fewer offers according to college recruiter data.
Economists note that roles requiring a bachelor’s degree and offering higher pay may be more exposed to AI than other jobs. That is widening the split in the labor market. Openings in frontline sectors remain, including trades, healthcare, hospitality and construction. At the same time, consultants, retail corporate staff and finance support roles are facing freezes or cuts.
Some companies are reorganising entirely around AI products. Chegg said it will cut 388 jobs globally, about 45 percent of staff, as it pivots to an automated model that answers student questions.
Confidence has slipped. Around 20 percent of Americans told a recent WSJ-NORC survey they were very or extremely confident they could find a good job if they wanted to, a lower share than in previous years. For many office workers, the steady climb up the corporate ladder now looks uncertain. For new graduates, the first rung is harder to reach.
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